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You’ve been given a gift. The stock and corporate bond markets have had an eye-watering recovery, and the housing market is showing strength too. You now have an opportunity to do a thorough portfolio review from a position of strength instead of during a market meltdown like we had in March.
I’m offering a series of questions that will hopefully inspire you to act, and to guide your thought process.
Is there any reason to change my strategic asset mix (SAM)?
SAM is the mix of assets (cash, bonds, stocks and real estate) that fits your objectives, financial situation and personality. It’s a long-term target around which your portfolio revolves.
The word strategic refers to the fact that it doesn’t change very often. It will need to be altered gradually due to aging (less risk, more income), or if your personal circumstances change significantly (i.e. job loss, inheritance), but otherwise, it can stay the same for years, even decades.